Organic Dried Distiller’s Grain Feed Market - By Source, Animal Type, Application, Distribution Channel, Application Analysis, Forecast, 2025 - 2034

Organic Dried Distiller’s Grain Feed Market Size

The global organic dried distiller’s grain feed market was estimated at USD 14.3 billion in 2024. The market is expected to grow from USD 15.3 billion in 2025 to USD 29.4 billion by 2034, growing at a CAGR of 7.5%.
 

The market for organic dried distiller's grain (DDG) feed has seen demand growth in the past years owing to the increasing requirement for organic animal products as well as the adoption of more sustainable agricultural practices. The market recently has shown considerable growth due to the increasing use of organic feed in poultry, dairy, and livestock sectors.
 

This growth is expected to continue in the coming years due to positive consumer sentiments and new policies encouraging organic farming. In the past, this market has had sharp growth in the consumption trend as there have been new ethanol producers obtaining organic certifications for their processes, increasing the supply of organic DDGs for animal feed. This was intensified in the years which followed global supply chain shocks when there was abundant interest and funding in the organic agriculture sector.
 

Steady growth came from the organic poultry and dairy sectors, especially in areas where the consumption of organic food is growing. The North America region remains the leader when it comes to organic infrastructure, regulation, and supply chain development, while the Asia-Pacific region will become increasingly important due to newly emerging organic farming activities. This growth was fueled by several key factors, there is the increasing concern of consumers with the purchase of organic beef, organic milk, and organic eggs which, in turn, raises the requirement for organically certified feed. The government, in some cases, needs and encourages substitutes for organic materials for feed components which lots of farmers find helpful, using the by-products from ethanol (DDGs) feeders titled them as farmers working towards environmental sustainability goals that many people consider appealing because of how much attention is on them these days.
 

Organic DDG feeds used in the mixing industry require different streams for agriculture, so this enables graduating in changing the processes of drying and granulating to use more advanced changing equipment which increases yield and reduces wear and tear.
 

Organic Dried Distiller’s Grain Feed Market Trends

During the fermentation of certified organic grains into ethanol, high-protein organic dried distiller's grain (DDG) feed is produced. Its concentration of protein, phosphorus, and B-vitamins renders it very useful and popular as a feed component for organic livestock and poultry grazing systems.


The market for organic DDG feed is the growing consumption levels of organic animal products. With consumers becoming more concerned about their health as well as the environment, there is a significant demand for organic meat, dairy, and eggs. Such a demand puts immediate pressure on farmers and producers to shift towards organic livestock production systems. It highlights the demand for organically certified feed inputs such as DDG. The growth of livestock and poultry farming is inevitable, as these producers need cost-effective, organic-compliant, and nutrient-rich feeds that boost animal health and productivity while meeting organic certification requirements.
 

Government policies with specific mandates have intensified the market trend even more. In several nations, certain subsidies, technical assistance, and expedited certification processes prompt producers to adopt organic approaches such as using organic DDG and organic livestock feed.
 

Besides market accessing costs, these policies guarantee better utilization. All these efforts tend to align with initiatives towards sustainable and circular agriculture. Organic DDG feed exemplifies circular economies because it is harvested from an ethanol plant by-product and redirected into agriculture. This helps achieve sustainability goals by replacing synthetic feeds with more sustainable options, minimizing waste, and maximizing resource efficiency in farming systems. These factors drive demand for organic farming, support policies that promote its adoption, and help meet corporate social responsibility goals—like in this case, where organic DDG feed is sustainably positioned as a key element in the evolving landscape of organic agriculture.
 

Organic Dried Distiller’s Grain Feed Market Analysis

The international market for organic dehydrated distiller's grain with soluble (DDG) feed is undergoing various changes which show shifting industry standards and market activity. An example of such a change is the increased application of modern animal nutrition technologies aimed at improving the structural and nutritional components of organic DDG.
 

Precision processing of feed to achieve uniform product quality and consistency is becoming increasingly important, especially for organic certified supply chains. Another emerging change is the broadening of organic DDG use in aquaculture and sub-specialized livestock with organic certification areas, expanding the traditional scope of use in cattle and poultry.
 

Moreover, there is an increase in interest in localized region-specific production in rural areas of developing countries for the purpose of importing less and building robust organic feed supply systems. This is aided by small and medium-scale organic distilleries which are entering the regions to satisfy local needs. There is also increased attention focused on the organic DDG feed constituents’ traceability and digital tracking due to more stringent regulations and higher consumer demand. All these factors together point out a shift to more refined and subdued practices in the market for organic DDG feed.
 

The corn source segment was valued at USD 4.9 billion in 2024, and it is anticipated to expand to 7% of CAGR during 2025-2034.
 

Within the organic DDG market, the corn-based DDG surpasses the competition capturing an market revenue share. Corn continues to be the favored cereal for deriving organic ethanol as it's accessible, rich in starch, and has good fermentation characteristics, which enables it to serve as a dependable and wholesome pillar of DDG feed. Moreover, corn's protein and energy value are outstanding, making corn DDG exceptionally beneficial for most livestock, especially in poultry, dairy, and beef cattle farming which entails considerable nutrition offered under organic farming system standards.
 

The cultivation of other crops such as wheat, rice, barley, millets, oats, rye, and sorghum are on the rise, especially in areas that have limited corn farming. For instance, parts of Europe and Asian markets have grain DDGs based on wheat and rice as the former fulfills the demand within Europe and the latter in Asia.
 

However, these alternatives still account for a smaller portion of the market because the processing plants available are not up to date and the plants have a low output of ethanol in comparison to corn. It is anticipated that there will be an increase in the variety of feedstock used, but at the same time it is estimated that corn will have a clear advantage forever because of its developed supply chains, high yield biomass, and the wide area of land cultivated under organic farming.
 

• For instance, Gulshan Polyols Ltd. is a prominent Indian manufacturer engaged in various sectors including mineral processing, grain processing, and animal nutrition. Among its range of products, the company produces dried distillers grain solids (DDGS), a high-protein by-product of the alcohol production process that is widely used in poultry and cattle feed. Its rice-based DDGS is particularly noted for its rich nutritional profile, containing protein levels between 43 to 47 percent, along with essential fats, fiber, phosphorus, and amino acids.
   
• The product is available in 50 kg polypack bags, with packaging customization options based on client needs. In addition to DDGS, Gulshan Polyols also offers corn gluten feed, rice protein, cattle feed, and corn steep liquor. The company supports its operations through a strong infrastructure that includes modern manufacturing units, quality control systems, packaging facilities, and captive power plants. It is also involved in the production of calcium carbonate, native starch, dextrose, sorbitol, malto dextrine, and organic sweeteners.
   

The dairy cattle animal type segment was valued at USD 4.3 billion in 2024 and gained 7.8% CAGR from 2025 to 2034 with a market share of 30.2%.
 

In the organic dried distiller’s grain feed market, dairy cattle accounted for the largest markets share in 2024. This value is highly attributed to the market nurtured by the nutritional needs of dairy cows that must ensure a steady milk flow have to take in protein, fiber, and energy.
 

As milk production correlates with cow health, hence all these factors must be considered. Due to its protein content and fiber that is easily digested, organic DDG is a suitable feeding raw materials in organic dairy farming systems that do not allow the use of synthetic supplements and non-organic inputs. It is also highly preferable because of its organic compliance, which helps in the enhancement of dairy producers’ certified scope of compliance.
 

Integrating DDG into the diet of dairy cattle on a regular basis has economic advantages as well because it lessens the need for more costly sources of organic protein such as soybean meals. This is further fueled by increasing global demand for organic milk and dairy products, which drives producers to expand organic production. There is still lower market adoption of organic DDG among the beef cattle, poultry, swine, and aquaculture sectors due to differences in dietary needs, market size, and regional farming practices. However, the dairy segment still dominates the market because of the nutritional benefits and strong demand for organic dairy products.
 

Based on application, the organic dried distiller's grain (DDG) feed market is divided into animal feed, fertilizers and soil amendments, bioenergy production and others. Out of these, animal feed remains to be the dominant application because of the high nutritional value of organic DDG, especially its protein, fiber, energy content which makes it an important ingredient in organically produced livestock and poultry feeds.
 

The market is witnessing increasing interest in non-feed applications as well. In bioenergy production, organic DDG is considered as a renewable energy source along with having residual energy content and suitability within renewable energy systems as traditional DDG is often overlooked.
 

Its application in fertilizers and soil amendments is also increasing because organic DDG has a constructive effect on soil by providing required nutrients, enhancing soil structure, and supporting the principles of organic farming. The “others” segment covers applications in specialty diets for pets and non-breed animals, even though it accounts to a smaller share of the market for now.
 

U.S. organic dried distiller’s grain feed market was valued at USD 3.2 billion in 2024 and expected to grow at a 7.3% CAGR from 2025-2034.
 

Due to the increasing adoption of organic livestock farming and elevating cognizance of sustainable agricultural practices, there has been pronounced development in the organic dried distiller’s grain (DDG) feed market in the United States.
 

Feed producers are now more inclined to use organic alternatives such as DDG which is rich in protein, fiber, and other nutrients crucial for livestock, because of the increasing consumer demand for organic animal products. Organic DDG, which is produced as a by-product of ethanol processing from organic grains, is compatible with organic farming practices and aids in circular agricultural economy.
 

The market is also supported by governmental aid and supportive policies concerning organic certification which enhances trust among consumers as well as incentives for producers. Evolving technologies in organic DDG production have enhanced nutritional value and market quality, ensuring that it is a better choice among options without additives or harmful ingredients.
 

Furthermore, there is greater partnership between biofuel producers and feed manufacturers which is improving the efficiency of the supply chain and guarantees that organic DDG will be available across major agricultural regions.
 

The ethanol production system in the US, together with the robust organic livestock farming industry, makes the country the leading supplier in the North American region when it comes to DDG (dried distiller’s grain) organic feed. The agro biofuel production in the country sustains the demand for organic DDG which bolsters the move towards sustainable Chile compliant feed formulation.
 

The combination of climate, agricultural best practices, and availability of organic feed grains place North America as the primary region for fostering the organic feed market. As a result, this reinforces the position of North America as a growing powerhouse of the organic feed supply market.
 

• For instance, Distiller’s dried grains with soluble (DDGS) are a nutrient-rich co-product of dry-milled ethanol production, widely used as an energy and protein supplement in animal feed. U.S. ethanol plants have the capacity to produce over 15 billion gallons of ethanol and 44 million metric tons of DDGS annually.
   
• The U.S. Grains Council (USGC) has played a vital role in promoting the nutritional benefits of DDGS globally. From 2009 to 2022/2023, DDGS exports grew significantly, reaching over 10 million metric tons distributed across 58 countries.
   
• Mexico emerged as the largest importer, accounting for over 20 percent of total exports, followed by South Korea, Vietnam, Indonesia, and Canada. The USGC provides resources such as best management practices to prevent contamination and a comprehensive DDGS user handbook to support international buyers and promote efficient DDGS usage.
   

Organic Dried Distiller’s Grain Feed Market Share

The global organic dried distiller’s grain (DDG) feed market analysis and forecast report revealed that the 5 major industry players in the value chain include POET LLC, Archer Daniels Midland Company (ADM), Valero Energy Corporation, Green Plains Inc., Flint Hills Resources which is cited to control a region of the market. These companies are fiercely competing on quality and reliability of supply, pricing, and coverage.
 

There is a strong focus on meeting and surpassing regulatory and social requirements including traceability and sustainability of supply chains. Alongside these advantages, price competition is still a decisive factor, especially in lower-income regions. Acclaimed nutrition and certified organics have become rehabbed forms of differentiation in blended organic feeds. Functional organic feed markets are being developed, and product offer optimization is vital.
 

Value-driven executives are projected to be looking to enhance their global distribution networks and supplier relations with livestock and poultry farms, aiming to capitalize on these market gaps while optimizing operational efficiency. With sustained collaboration with bioethanol plants for raw materials, innovation in processing tech will further bolster emerging competition in the region. The use of regional export capabilities combined with market knowledge to capitalize on developing markets stands to broaden international presence.
 

While the competition still seems fierce, it is expected to remain at an advanced level owing to/because of strategic partnerships and new product development while the demand for organic livestock goods remains high.
 

Trade Impact

The U.S.-China trade war is driving up the cost of organic dried distiller's grain (DDG) feed for American livestock producers. With the imposition of new tariffs on Chinese imports, prices for DDG have increased by 15-20%, placing a significant burden on U.S. farmers. As a result, U.S. suppliers are seeking alternatives from countries like Brazil and Argentina, but challenges in consistency and quality remain.
 

For Chinese manufacturers, the tariffs have reduced profit margins, forcing many to shift their exports to markets in Southeast Asia and Africa. However, these markets cannot fully replace the U.S. demand, leading to lost revenue. In response, some Chinese firms are focusing on premium organic DDG products to stay competitive.
 

The consequences are felt on both sides: U.S. livestock producers face higher input costs during difficult economic conditions, while Chinese manufacturers suffer from declining profits. Interestingly, the trade conflict may ultimately open opportunities for third-party suppliers from other regions to step in and fill the void left by both markets’ adjustments.
 

Organic Dried Distiller’s Grain Feed Market Companies

Major players operating in the organic dried distiller’s grain feed industry are:
 

• POET LLC – With a 20% share of the market, POET is one of North America’s leading ethanol producers as well as a major supplier of animal feed DDGS.
   
• Archer Daniels Midland Company (ADM) – ADM possesses an 18% share of the market, becoming one of the leaders in both ethanol and DDGS trade while increasing their market reach into animal nutrition.
   
• Valero Energy Corporation - Valero Energy is a leading supplier of ethanol, and in conjunction with other producers, supplies DDGS for animal feeds worldwide.
   
• Green Plains Inc. – One of the top US producers of ethanol, Green Plains is also a major supplier of DDGS used in animal feed.
   
• Flint Hills Resources - Part of Koch Industries, Flint Hills Resources is involved with production of ethanol as well as the supply of DDGS to the animal feed industry.
   

Organic Dried Distiller’s Grain Feed News

• In September 2024, India has seen a significant rise in the export of DDGS (Distiller's Dried Grains with Soluble), a byproduct of ethanol production, with exports increasing from 30 metric tons in 2022 to over 287,593 metric tons in 2024. However, the industry faces concerns over falling DDGS prices, which have dropped by 15-20%, affecting the profitability of ethanol producers. Despite this, DDGS remains an essential cost-effective feed for livestock, benefiting both the Indian export market and the global animal nutrition sector.
   
• In September 2023, A delegation from the U.S. Grains Council (USGC) visited Gujarat, India, to explore the opportunities for exporting distiller's dried grains with solubles (DDGS) to the Indian dairy sector. The mission aimed to promote DDGS as a valuable nutritional supplement for cattle feed, with the goal of boosting the use of U.S. DDGS in India's growing animal feed industry.
   
• In July 2022, eFeed, an Indian start-up, has launched a project to set up nutrition advisory centers in the northeastern districts of India, which could drive greater adoption of distiller's dried grains with soluble (DDGS) in the region's feed market. eFeed estimates that the total feed demand across cattle, aquaculture, poultry, and pig farming sectors in Northeast India reaches 25,000 metric tons.
   

This organic dried distiller’s grain feed market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Source

• Corn
• Wheat
• Rice
• Barley
• Sorghum
• Oats
• Rye
• Millet
• Others

Market, By Animal Type

• Dairy cattle
• Beef cattle
• Swine
• Poultry
• Aqua
• Other animal types

Market, By Application

• Animal feed
• Bioenergy production
• Fertilizers & Soil amendments
• Others

Market, By Distribution Channel

• Online
• Offline

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa